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L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system?
dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.)
Item Code Avg. Inventory (units) Value ($/unit)
1289 380 3.25
2347 300 4.00
2349 120 2.50
2363 70 1.30
2394 60 1.75
2395 25 1.75
6782 20 1.15
7844 12 2.05
8210 10 1.60
8310 7 2.00
9111 6 3.00
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- Can ABC inventory classification be applied to manufacturing component inventories? Discuss.arrow_forwardL. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the ← table below: How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places) Item Code Avg. Inventory (units) 1289 2347 2349 2363 2394 2395 L. Houts Plastics Charlotte Inventory Levels Value Dollar Volume (S/unit) 3.50 6782 7844 8210 8310 9111 360 300 120 65 60 25 222216 20 10 7 4.00 2.50 1.80 1.75 2.25 1.15 2.05 1.60 2.00 3.00 1,200 300 105 23 25 14 18 3,134 % of Dollar Volume 38.29 9.57 3.35 0.73 0.78 0.45 0.57arrow_forwardNeed in Detail (No AI)arrow_forward
- The following data give monthly Demband >1300 units Ordenng cost Holding lo st to Q - $ 15 pe oder $2/ units peo year 464 Lead time 4 days %3D wha t is the tolal annua / vanable inventory Cost Cie total annus! total aroual ordening) © $968 $ 8 ® $484 D $ I436 14520arrow_forwardWhat is ABC inventory system?arrow_forward4) Rane Brake Linings gathered information for its brake lining components as presented in the table below. How would the firm classify these items according to an ABC classification system? Initial Information Part # Unit Cost Annual Demand 10 10 200 11 30 125 12 9 100 13 12 5000 14 50 195 15 6 300 16 100 70arrow_forward
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